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Taxes Question

by adamcm
2 replies
Hi all,

Since I am outside of the US, I do not receive any tax forms from the different network that I bring sales for. Last year when I filed my taxes, I took the amount of sales my websites generated from January 1st to December 31st. However, most of my December sales do not get paid until the middle of Janauary.

Should I be filing based on what has actually been deposited into my bank account, or for the actual sales made?

Thanks!
#question #taxes
  • Profile picture of the author Richard Tunnah
    You would be best asking a more qualified person like an accountant in your home country. Better than getting wrong advice on here and ending up with a large tax bill or worse a huge penalty.

    Rich
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  • Profile picture of the author Istvan Horvath
    ^^ What Richard said...

    Since every country (sometimes even states and provinces inside the same - federal - country) has different legislation regarding the taxes, you should consult with a local tax professional.

    For the question you asked, I know in Canada the principle is when the money was "earned"... not when it arrived to your bank account. It's called the "accrual method" of accounting.

    The other accounting method could be the "cash method" - you report it when (obviously) the cash has been received.

    And when you add to the equation the calendar year vs. fiscal year... it really gets complicated

    Get an accountant!
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